New FSA guidance on treating customers fairly

by Gill Montia

Story link: New FSA guidance on treating customers fairly

The Financial Services Authority (FSA) has published new guidance on the fair treatment of customers by providers and distributors of products and services.

The Guidance has been developed from the FSA’s Treating Customers Fairly initiative and is based on the regulator’s view that a customer should receive the same fair treatment regardless of whether their product or service is provided and distributed by one firm, or by more than one.

The publication, which follows an industry wide consultation, provides a principles-based response to the financial sector’s request for greater clarity on the responsibilities of providers and distributors.

It sets out high level responsibilities for providers and distributors throughout the life of a product or service and can therefore be applied across all financial sectors.

These responsibilities will need to be considered during product or service design, marketing and selling, post-sale service and information, and in handling complaints.

Where products or services are provided or distributed by more than one business, each firm in the chain should review their responsibilities regardless of whether they are due to another firm in the chain, or directly to the retail customer.